ATO breathes new life into an anti-avoidance law targeting trusts
At Nexia, we believe in tackling issues head-on. We strive to see reality for how it is, even if that might mean having an uncomfortable conversation. Because anything less is not helpful to you.
Section 100A targets tax mischief through trusts that almost anyone can engage in. But the ATO has now cast doubt on the legitimacy of some practices which for many years were considered uncontroversial within families. This includes appointing trust income to your adult children – usually incurring a lower tax impost – and reinvesting the funds in the trust for the benefit of your family.
The ATO’s position leaves more people exposed to falling foul of section 100A, the potential consequence of which is tax imposed at 47%, with penalties and interest possibly as well.
Ignoring this new development invites high risk.
Nexia Australia invites you to watch the recording of our national webinar, delivered by National Tax Director, David Montani.
This important session covers:
- The tax mischief anyone could engage in (and you might have without realising)
- The “ordinary family or commercial dealing” exception to s100A
- Are you in the ATO’s sights? When your circumstances fall into the ATO’s:
- Green zone
- Red zone
- “No-zone” void
- Consequences of each zone
- Can you still use a corporate beneficiary?
- Your trust-income appointment decisions ahead of 30 June 2023
- Past years’ decisions that might require mitigating action
- Next step